SHORT TERM: consolidation day, DOW -24
Overnight the Asian markets lost 0.4%. Europe opened higher but lost 0.4% as well. US index futures were lower overnight. At 8:30 Q3 GDP was reported lower: +1.5% v +3.9%, (the market had little reaction), and weekly Jobless claims were higher: 260K v 259K. The market gapped down at the open to SPX 2085, it had closed at 2090 yesterday. In the opening minutes it dipped to SPX 2084 and then tried to rally. At 10am Pending home sales were reported lower: -2.3% v -1.4%. Just past 10am the SPX made it back to 2090 and then started to pullback again. At 11am the SPX hit a slightly lower low at 2083, and then rallied to 2093 just before a 2089 close.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ were -0.30%. Bonds lost 20 ticks, Crude slipped 15 cents, Gold dropped $11, and the USD was lower too. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Personal income/spending and PCE priced at 8:30, the Chicago PMI at 9:45, and Consumer sentiment at 10am.
The market gapped down at the open today, rallied back to close the gap at SPX 2090, then went into a narrow trading range. Heading into the close the market hit SPX 2093, a new uptrend high, then backed off. Nothing has changed much for the wave count: Minor wave 5, of Intermediate wave iii, of Major wave 3 is subdividing. Thus far we have from the SPX 2059 Minor 4 low: 2085-2063-2093. Short term support remains at the 2085 and 2070 pivots, with resistance at SPX 2100 and the 2131 pivot. Short term momentum stayed above neutral after yesterday’s negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market